Marketing Strategy: Rocky Mountain Chocolate Factory Case Study

This report provides a strategic marketing analysis of Rocky Mountain Chocolate Factory, an international manufacturer and franchisor of chocolate and confectionery products. It begins by outlining the company's value proposition, focusing on the Dark Chocolate Assorted Gift Box and its commi...Read More

Running head: MARKETING MANAGEMENT
Marketing Management
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Abstract
The report has thrown light on identifying the strategic management analysis of Rocky
Mountain Chocolate Factory which is situated in The United States of America. With the
help of the SWOT analysis matrix, it can be identified that there are different kinds of issues,
opportunities along with strengths of the company that has helped the company in improving
their business operations successfully. Furthermore, with the help of segmentation, targeting
along with positioning of the product, the company has been able to gain a competitive
position in the market and it has assisted them in becoming more competitive in comparison
to competitors. Lastly, the recommendations have been provided that will be helpful for them
in securing a strong position in long term.

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Table of Contents
Introduction................................................................................................................................3
Value Proposition.......................................................................................................................3
SWOT Analysis and Summary..................................................................................................4
Target Market and Positioning Analysis..................................................................................10
Conclusion and Recommendation............................................................................................12
References................................................................................................................................15

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Introduction
Rocky Mountain Chocolate Factory is one of the international manufacturers and
franchisors along with retail operator in US, Canada, Philippines along with Japan. The
company was founded in the year 1981 and the key people involved in the incorporation of
the company include Franklin E. Crail who is the founder as well as CEO of the company
(Rmcf.com, 2019).
The main products which are sold by them includes chocolate candies as well as other
confectionary related items to supply its different franchise locations as well. In addition, in
the year 2013, Kellogg’s which is situated at United States of America, partnered with Rocky
Mountain Chocolate Factory in order to release a cereal which will be under the brand of
latter and it contained sweetened corn flakes along with chocolate pieces and almond slices
and the company falls under the chocolate and confectionary related industry.
The mission of Rocky Mountain Chocolate Factory is to provide the customers with
quality, value and variety of products to satisfy the demands of customers. The vision is to
manage money and maintaining proper relationship with the employees along with
franchisees. The main aim and purpose of the report is to analyze the strategic management
approaches and objectives of the company through identifying the SWOT analysis along with
analysis of the target effort.
Value Proposition
The value proposition is defined as the promise of the values which is required to be
delivered, acknowledged and communicated to the customers. It is defined as the belief from
the customers in analyzing how the value can be delivered and experienced for the customers
(Zott & Amit, 2013). The product which has been selected from Rocky Mountain Chocolate

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Factory is the Dark Chocolate Assorted Gift Box which is considered to be the most
luxurious chocolate and the pack contains the different dark chocolate chocolates as well as
biscuits which helps in delivering to the customers and increase their value. The company has
been able to create unique customer value proposition as they are able to build strong
behavior of buying and loyalty with the different customers (Yuliana, 2013).
In addition, the company Rocky Mountain Chocolate Factory’s constant attention
towards the different needs of the customers is the foundation of the company which is
inspired through maximizing the transparency along with excellence in quality which is
delivered by them (Willcocks, 2013). Moreover, the company practices are originally based
on mutual trust between the different colleagues along with the customers with full
dedication along with transparency to the society stakeholders and the group with whom they
communicate on a daily basis.
The respective value proposition provided by the dark chocolates assorted boxes
which is delivered by Rocky Mountain Chocolate Factory assist in providing the most
delicious chocolates at high priceto stay ahead of the other competitors present in the market
(Welford, 2014). The fundamental aspect of the success is careful selection of highest quality
raw materials with proper sourcing done through maintaining the strict ethical code which is
concerning the manufacturing and harvesting. As the company charges high price for the
assorted boxes of chocolates, the nutritional value present in the different items is high and
worth such pricing strategies as well.
SWOT Analysis and Summary
Strengths
The company has qualified along with
Weaknesses
Lack of legal experience is the first and

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accredited professionals who are working with
the company
The diversified workplace is the other
strength of the company from various
educational or cultural backgrounds that
helps the organization in bringing diverse
ideas along with methodologies of performing
the different aspects (Volberda et al., 2013)
Proper automation and technological
advancement have been helpful for them in
maintaining consistency in the quality of the
products which are sold by them (Vogel &
Güttel, 2013)
The strong distribution network has been able to
build reliable network related to distribution
network which can reach majority of the
potential market.
foremost weakness and it affects the overall
profitability of the firm
The performance appraisal aspect is the
other weakness of the company which
affected the overall growth of the company in
contrast of the other competitors which are
present in the market and it leads to lack of
morale of employees (Schlegelmilch, 2016)
The centralization of the decision-making
aspects has reduced the efficiency of the
employees negatively (Pyo, 2015)
Opportunities
The new policy related to taxation can
significantly impact the way of performing
business in the competitive business
environment (Phillips, 2016)
The low rate of inflation is the other opportunity
which should be considered by Rocky Mountain
Chocolate Factory as it will bring stability in the
Threats
The different environmental regulations which
have been introduced new in the market can be
threat for Rocky Mountain Chocolate Factory in
the existing categories of products
The different new technologies developed by
the different competitors can be a serious threat

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market effectively
The internet usage can be one of the main
aspects which can be incorporated by the
company as it will be helpful in improving
the increasing their presence in different
parts of the world (Kubacki et al., 2017)
The e-commerce is the other approach which
can be incorporated by the company Rocky
Mountain Chocolate Factory as it will enhance
their way of increasing revenues and it will
satisfy the needs of customers
for them in long term (Lasserre, 2017)
The shortage of the workers who are skilled in
the global market poses a huge threat to steady
growth of profits for the Rocky Mountain
Chocolate Factory in the respective markets
Lastly, the intense competition in the market is
the other aspect which can create downward
pressure on the overall sales as well as
profitability of the company (Kotler et al., 2017)
Proper explanation of the SWOT analysis will be helpful in understanding their
position in the competitive business environment which is described as follows:
Strengths
Reliable Suppliers- It is one of the major strengths of the company as the company
has the strong base of the suppliers who helps in providing raw materials which enable the
company to overcome the supply chain related bottlenecks (Holsapple, 2013).
High Level of Satisfaction of Customers- It is the other strength wherein the
company tries to maintain proper and dedicated relationships with the customers has helped
them in creating good brand equity among the customers who are potential.

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High Skilled Workforce- It is the strength wherein the company provides the
employees with the different training and educational programs and they are being motivated
in achieving more and make the company more competitive.
Distribution Network- Over the last few years, Rocky Mountain Chocolate Factory
has been able to build distribution network which is reliable and it helps them in reaching
majority of the potential market (Hitt & Duane Ireland, 2017).
Expert Professionals-The different employees who are employed at Rocky Mountain
Chocolate Factory are highly qualified and diversified that helped the company in achieving
greater heights in comparison to the other competitors in the market.
Weaknesses
Lack of Legal Experience- It is the first and foremost aspect which makes the
operations of the company inefficient in comparison to the other companies which are the
competitors.
High rate of attrition in the organization- It is the other weakness wherein it has
been noticed that there is high rate of the turnover among employees and due to the
respective fact, the company is spending huge sum on the training and development of the
employees as the performance management is not systematic (Heding, Knudtzen & Bjerre,
2015).
Centralization of Decision-Making- It is the other weakness which is affecting the
freedom of the different employees present in the company. The higher officials feel that the
decision-making approach is applicable for top management and it affects the overall
motivation of employees.
Opportunities

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Taxation Policy-It is the opportunity in which the company can establish the different
opportunities for the established player such as Rocky Mountain Chocolate Factory to
increase the level of profitability in the market.
Rate of Inflation- It is the other opportunity which can be adopted by the company
Rocky Mountain Chocolate Factory. Due to the low rate of inflation, it helped in bringing
stability in the entire competitive market along with enabling the credit at lower rate to the
different customers of the company in a positive manner (Galliers & Leidner, 2014).
Usage of Internet- It is the other opportunity which can be adopted by Rocky
Mountain Chocolate Factory which will be helpful in improving and increasing presence in
various parts of the world and attract more customers.
E-commerce Aspect- It is the last opportunity that can be adopted by Rocky Mountain
Chocolate Factory wherein there will be inclusion of enhancement of the different kinds of
increase in revenues which will satisfy the needs of the customers appropriately (David &
David, 2013).
Threats
Environmental Regulations- It is the first and foremost threat that can affect growth
of company as the new regulations related to environment as it will be creating impact on the
product categories which are existing (Camilleri, 2018).
Development of Technology by Competitors- It is the other threat in which the
development of technological advancements can become disruptor and it will be treated as
the serious threat in the long-term orientation.
Intense Level of Competition- It is the threat in which the chocolate companies are
increasing at a large extent and it can affect the overall stability of the company in a negative

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manner. Due to the increase in the number of companies in the market, there are huge
downward pressures in the company which will be affecting profitability along with overall
sales of the company in a negative manner (Bauer & Matzler, 2014).
From the overall SWOT analysis, it has been clear that the company has different
strengths, weaknesses, threats along with opportunities that can affect the growth of the
company in both positive and negative manner. Rocky Mountain Chocolate Factory needs to
identify the opportunities as it will be helpful for them in improving their presence in the
competitive market environment and it will be acting as an advantage for the company.
SO Strategies
The proper increase in the marketing to attract
the different consumers to spend in an effective
manner
Proper development of environment friendly
products with innovation and at a low cost
which could be sold by them at low prices
The marketing of the products at different
low prices through offering discounts and it
helps in increasing the sales of the company
due to the low rate of inflation (Andaleeb,
2016)
WO Strategies
Proper increase in payroll, providing the
different packages related to incentives can help
in benefitting the employees as it will be helpful
in reducing turnover of employees and it will be
helpful in improving the morale of the
employees
ST Strategies
Proper utilization of strong network of
distribution to reach to the different customers
WT Strategies
Increase in the overall spending on research and
development tactics to compete better with the

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along with fighting the new entrants
Utilization of the financial position of company
which is strong to invest in the intellectual
property related rights
Proper usage of innovation can help the
company in identifying the cheaper alternatives
which could be used in reducing the costs
competitors
Providing different incentives along with
engagement among employees will be helpful in
retaining the talents who are strong (Alserhan,
2017)
Target Market and Positioning Analysis
As commented by Nowak et al. (2015), the market segmentation is the strategy
related to marketing that includes the dividing the broad target segment of customers in
subsets of customers, countries or businesses who have common type of needs or priorities
which can be met by the company and it will be helpful for improving the brand image of the
company in a positive manner.
On the other hand, the target market includes the group of different customers
wherein the respective business has decided to aim in showcasing their marketing efforts and
the target market is the first and foremost element of the marketing strategy which will be
helpful for the company to improve their brand image. Lastly, the positioning is the other
aspect which should be managed by the company that helps them in understanding the
specific group of customers to whom the products should be offered. It is created through the
perception of price, product, and place along with promotion (Domegan & Hastings, 2017).
Segmentation
In order to develop the marketing strategy of Rocky Mountain Chocolate Factory Inc,
proper identification of the segmentation base is essential in nature which will be beneficial

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in understanding the specific behavior of the customers related to buying. The Rocky
Mountain Chocolate Factory Inc uses the proper mix of the different kinds of psychographic,
geographic along with behavioral segmentation which helps in segmenting their products
(Domegan & Hastings, 2017).
As per the psychographic segmentation, the Rocky Mountain Chocolate Factory Inc
offers different size of the dark chocolates assorted boxes such as small, medium and large.
After the introduction of the different assorted boxes, the company Rocky Mountain
Chocolate Factory Inc has been able to provide the customers with different choices and it
cannot be provided by the other competitors that are the competitive advantage of the
company (Alserhan, 2017).
The geographic segmentation of Rocky Mountain Chocolate Factory Inc includes
urban and semi-urban population and everyone will be able to afford the chocolate boxes as
per their needs and desires. As the company has kept the pricing of the products minimal,
therefore it is easier for them in making the chocolates affordable for all customers and it
increased their sales and profitability at a higher rate (Zott & Amit, 2013).
As per the behavioral segmentation of Rocky Mountain Chocolate Factory Inc, it can
be identified that it is based on occasional segmentation which can be bought for the different
celebration and it can be consumed by the different customers as breakfast or lunch as it is
less sweetened. In the present scenario, the different young generation individuals are
becoming health conscious and they prefer to consume the various items which are delicious
yet it should be nutritious in nature.
Targeting

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With the help of the analysis of segmenting the product, it can be identified that the
respective company Rocky Mountain Chocolate Factory Inc targets different group of
individuals starting from young generation to the elderly individuals in the market. With
the proper targeting of the respective customers in the market, it can be identified that the
company is growing more profitability in the market in comparison to the other companies
which are the major competitors (Yuliana, 2013).
Positioning
In case of positioning, it can be identified that the company Rocky Mountain
Chocolate Factory Inc has positioned themselves as one of the most significant nutritional
chocolate company which are high in nutrients. The products which are sold by them are high
quality and the prices are reasonable which has assisted the company to improve their
position in the market appropriately (Yuliana, 2013). In the initial phase, the company Rocky
Mountain Chocolate Factory Inc has positioned themselves as the most luxurious brand
products which affected the profitability of the company, however later on after the analysis
of the different competitors, the company tried to position themselves as the company which
provides products at low price and high quality which helped them in gaining competitive
position in the market.
Conclusion and Recommendation
Therefore, it can be concluded that the marketing strategic analysis of the company
Rocky Mountain Chocolate Factory Inc has helped in identifying the different kinds of
strengths, weaknesses, threats along with opportunities that will be appropriate for managing
the different activities in a positive manner. The strong brand image of the company is one of
the major strength which will be helpful in achieving the competitive advantage and attain the
competitive edge as well. With the analysis of the different research tools such as SWOT

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analysis along with segmentation, targeting as well as positioning, it can be identified that the
company can be designing the business plan in accordance to the changing preferences of the
different customers in the market. Moreover, the company should be continuing working
together for the welfare of the society along with protecting the brand equity as well as
goodwill of the company that will help them in becoming more efficient in operations and
continue to successfully grow in comparison to the other competitors present in the business
environment.
On the other hand, there are different kinds of recommendations which can be
provided to the company Rocky Mountain Chocolate Factory Inc to expand their operations
in the different countries and it will be appropriate for the overall efficiency and growth of
the company in a positive manner.
Firstly, the company needs to come up with the different kinds of new products which
are for the health conscious individuals as it will help them in increasing the overall brand
image in the market. In the present scenario, the customers are becoming health conscious
and they prefer to consume the products which will be beneficial for the health. In such
scenario, there can be introduction of chocolate syrups and chocolates which does not
constitute any sweetening agent.
Secondly, the company can offer the products through e-commerce channels as the
young generation are busy with their work schedules and it is difficult for them to visit stores
to purchase the chocolates or other items. In such scenario, there can be online sale of the
different products which will be beneficial for the overall success of the company
appropriately.
Furthermore, there can be introduction of special application from the smart phones
that will be effective approach that can be helpful for Rocky Mountain Chocolate Factory Inc

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and the customers as it will be allowing them to buy the products from the company through
the website of the company in a relaxed manner from anywhere they wish to.
From the recommendations, it can be identified that a detailed plan is required to be
incorporated in the process of implementation of the objectives and it will be beneficial for
improving the brand image of the company along with satisfying the customers in a positive
manner as well. The most inevitable and important aspect of the strategy implementation is
the proper evaluation of whole strategic related process which will be helpful for the
company in implementation control and the achieved results can be carried on in a positive
manner as well. The whole realization of the strategy will be the long term strategy that will
be keeping harmony with company’s image as well as values.

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